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BBB uncovers advance fee loan scam in Calgary

A for sale sign is shown outside a house under construction in a new subdivision in Beckwith, Ont.THE CANADIAN PRESS/Sean Kilpatrick
Summary

An investigation by the Better Business Bureau (BBB) has found evidence of an advance fee loan scam

Langridge Financial claimed to have office locations in Calgary and New York.

Five individuals filed reports to the BBB since September 30, noting losses ranging from $558 to nearly $3,000

CALGARY (660 NEWS) – An investigation by the Better Business Bureau (BBB) has found evidence of an advance fee loan scam by Langridge Financial, which claims to have office locations in Calgary and New York.

The BBB said that Langridge Financial’s website remained live until November 6 and promised consumer loans regardless of age, income or credit. The company claimed that the borrower will receive the loan once an advance fee is paid.

Five individuals filed reports to the BBB since September 30, noting losses ranging from $558 to nearly $3,000. In all instances, consumers were required to pay fees for insurance or because of low credit scores in order to receive their loan. Consumers reported they didn’t receive the promised loans and have been unable to recoup fees remitted.

Mail sent by the BBB was returned and no results were found in a search of Canadian records as to the company being incorporated or holding a trade name.

Mary O’Sullivan-Andersen, president and CEO of the BBB serving Southern Alberta and East Kootenay, said there are many versions of this kind of scam, from home mortgage refinancing to an emergency loan to pay the bills

The BBB reminds consumers that advance fee loans are against the law in Canada and it’s illegal for companies to promise a loan and require payment before the loan is delivered.